Tax Credit Investigation

bikeman

Hi

I have been selected for a tax credit investigation. No reason has been given and I have repeatedly made unsuccessfull attempts to contact the investigating dept on the tel number provided.

They want to see all statements in a 3 month period last year, but have not informed me what is their interest in this specifc period.

They have given me only 21 days to provide original copies of all documents. This presents a problem since all my banking is online so I don't even have printed statements. I can print statements but only up to 90 days previous, so they don't cover the period in question.

They have also sent me a 'income and expenditure' form but haven't specifically asked me to complete it in their letter. I am inclined not to do so, not because I have anything to hide but because it requests irrelevant information such as the value/ownership of my property, car, my outgoings and details of any tax free savings such as premium bonds and ISAs. None of these are relevant to a tax credits claim and they are not requirted to be reported to HMRC in any tax return. I am inclined to bin it.

Does anyone have any experience of this? Thanks

SuziQ

With my bank and my daughter's bank ( Barclays and Nat west), your older statements are kept as PDF files you can access. I can also print statements out at my bank ( Barclays ) there is a special machine and they come out on headed paper.

ETA you can also ask them to send you older statements and they usually quote 10 days but often send quicker than that.

You have to cooperate with them- believe me, I went through this 6 months ago and everything was fine, but they don't take any excuses.i may be wrong, but I believe investments etc may be relevant as they could generate an income- maybe take legal advice if you feel you need it, but if you have nothing to hide why are you inclined to? I literally opened up my whole life to them and it was done and dusted in just over 2 weeks.

bikeman

I was referring to ISAs and premium bonds - I don't think either can generate income.
Also what business is it of theirs how much my house is worth, how big my mortgage is, how much I spend on utilities, how much my car is worth - none are relevant to tax credits. It is not like I am claiming any means tested benefits.

More of an issue is why the !!!!!!s dont answer their phone and give me such a short deadline.

Also I'm not sure I want all my account numbers scanned and held online by a gov dept. God only knows where it will end up.

lovinituk

Don't answer them if you don't want to, but don't expect to receive any further payments and probably a demand for some to be paid back.

SuziQ

Premium bonds are relevant as they are a form of savings which can be cashed in, in times of need. Did you know they have access to your bank accounts anyway? They knew I had a redundant account with no money in and asked why I hadn't declared it- I had totally forgotten about it, but they knew about it!

I think often they are looking for honesty. If you lie or omit something then they will act on that. Them knowing all our financial business is the price we pay for being in receipt of benefits.

I just think there is so much fraud now( and I am not for one moment insinuating that you are perpetrating fraud) I just think they are investigating the easy sitting ducks because they can't get to the real fraudsters most of the time!


ETA I forgot to say

Also what business is it of theirs how much my house is worth, how big my mortgage is, how much I spend on utilities, how much my car is worth

They ask for this because they look to see whether your lifestyle/spending habits are possible on what you are declaring. If for instance someone was giving you a £1,000 a month which was subsidising a better lifestyle than you would be able to have on the figures they have, they would be saying that the extra income should be declared, to them and maybe for tax purposes too. Just a 'for instance'. I spent many hours talking to my investigator , this is how I know all of this, lol.

bikeman

SuziQ wrote: »

Premium bonds are relevant as they are a form of savings which can be cashed in, in times of need.

Sorry I dont see the relevance. Like everyone else my tax credits claim is based upon my income - tax free investments have no bearing.

Like eveyone I am within my rights to use tax free investments and do not have to declare them on my tax rerturn/tax credits claim. They are irrelevant unless I choose to cash them in and I am under no obligation to do so 'in hardtimes'.

The fact that I can liquidate them in an emergency is of no consequence.

I don't make the rules.

As for declaring empty accounts, I've never heard such rubbish.

I'm going to comply with their request to prove my income. If they want to know what ISAs I have, what car I drive, how much I spend on food etc and other stuff that is not relevant to a tax credits declaration they will have to get that themselves or get a court order forcing me to provide it.

I think it perfectly possible that they've asked for this information but neglected to say that it is voluntary in the hope that I provide it. I'll get some legal advice.

miduck

bikeman wrote: »

Sorry I dont see the relevance. Like everyone else my tax credits claim is based upon my working income and savings interest - tax free investments have no bearing.

Like eveyone I am within my rights to use tax free investments and do not have to declare them on my tax rerturn/tax credits claim. They are irrelevant unless I choose to cash them in and I am under no obligation to do so 'in hardtimes'.

The fact that I can liquidate them in an emergency is of no consequence.

I don't make the rules.

As for declaring empty accounts, I've never heard such rubbish.

If you think it is "rubbish", I would refer you to lovinituk's post:

lovinituk wrote: »

Don't answer them if you don't want to, but don't expect to receive any further payments and probably a demand for some to be paid back.

If you don't like it, you are free to close your benefit claim.

antonic

As others have said, if you dont co-operate you may run into further problems with them which is your choice.

But you are conveniently forgetting that you chose to take the tax credits, so why shouldnt check that you have been paid the right amount ? - You never know you may find out that you have been underpaid and may get some more cash.

missindecisive

do they really ask what car you drive? and what you spend on food? really?

miduck

missindecisive wrote: »

do they really ask what car you drive? and what you spend on food? really?

They look at things like this to see if a claimant's outgoings do not match what they declare as income. For instance, it would be unrealistic for someone earning £5,000 a year to be driving a top of the range car.

SuziQ

As for declaring empty accounts, I've never heard such rubbish.

It's about being honest and declaring ALL bank accounts. I don't like to be called a liar- I can assure you this happened to me last year.

As others have said, if you don't want the invasion into your privacy then you are perfectly entitled not to apply for TC. If you don't want to accept the advice here which is often given by those with first hand experience or even at times people working in the 'system' then pay your money and seek legal advice. I doubt you will accept any advice that doesn't state what you want to hear, though.

Anyone balking like this seems to be indicating they have something to hide.

Miduck you explained it much better than me!

They look at things like this to see if a claimant's outgoings do not match what they declare as income. For instance, it would be unrealistic for someone earning £5,000 a year to be driving a top of the range car.

ETA I see from your other posts that you are self employed. This may be why they are looking into you. It may be perfectly simple- just ensuring you are declaring all your earnings, as it is not as simple as when someone is paye. A very 'rich' lifestyle may indicate that you are not declaring all earnings ie cash in hand etc. I know they clamped down quite heavily on self employed people over the last year, as some people were using it as a way to get working tax credit they weren't entitled to. You have nothing to worry about if you have been honest.


Hope it all gets sorted quickly for you.

If you look at this legal advice site and read down to the bottom, it explains how certain investments etc can affect entitlement
http://www.lawcentreni.org/EoR/benefits-and-tax-credits/tax-credits/introduction-to-tax-credits.html